Supply Chain and Inventory Management Quiz

What is the primary goal of inventory management in the supply chain?

• To increase production costs

• To ensure the right quantity of supplies is available at the right time

• To maximise the number of suppliers

• To reduce the number of employees

Which of the following is a logistics activity in the supply chain?

• Marketing

• Materials handling

• Product design

• Customer service

What is the purpose of a just-in-time supply system?

• To increase inventory levels

• To reduce waste and improve efficiency

• To extend delivery times

• To increase the number of suppliers

Which system is often used in prefabrication and on-site construction to manage inventory?

• Kanban system

• FIFO system

• LIFO system

• ABC analysis

What is the role of transportation in the supply chain?

• To increase the cost of goods

• To move goods from one location to another efficiently

• To design new products

• To manage customer relationships

How does integrating computer systems benefit supply chains?

• By increasing manual data entry

• By ensuring common data and communication standards

• By reducing the need for technology

• By increasing the number of suppliers

What is Electronic Data Interchange (EDI) used for in supply chains?

• To manually process orders

• To electronically exchange business documents

• To increase paper usage

• To reduce communication between businesses

Why is it important to specify and agree on responsibilities of individual businesses in a supply chain?

• To increase competition

• To ensure clarity and accountability

• To reduce the number of businesses involved

• To increase production costs

What is the significance of sharing requirements in a supply chain?

• To increase secrecy

• To ensure all parties understand the need for goods, services, and quality standards

• To reduce transparency

• To increase the number of suppliers

Which of the following is NOT a component of logistics activities in the supply chain?

• Inventory management

• Production

• Advertising

• Security of supplies